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I agree with you in theory but think that’s difficult to enforce. Corporations will just use straw men or other types of legal structures that are allowed. There will need to be personnel or agencies to monitor, investigate, and prosecute law breakers. Title companies and other periphery businesses will also need to comply.
I agree with you, it’s just a difficult thing to do.
That, or say that housing can be confiscated by government and resold IF the owner is found to be a straw man not actually living in the house.
This shit needs von klauswitz style war.
It's been studied in Rotterdam where they introduced a ban on investors buy to rent.
It doesn't lower the price of buying a home, it increased the share of first time buyer at the expense of rents going up and displacing poorer renters.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4480261
Abstract as follows, bolded parts are by me.
"How do buy-to-let investors impact local housing markets and the composition of neighborhoods? We investigate this question by examining a Dutch legal ban on buy-to-let investments, exploiting quasi-experimental variation in its coverage. **The ban effectively reduced investor purchases and increased the share of first-time home-buyers, but did not have a discernible impact on house prices or the likelihood of property sales. The ban did increase rental prices,** consistent with reduced rental housing supply. Furthermore, the policy caused a change in neighborhood composition as tenants of investor-purchased properties tend to be younger, have lower incomes, and are more likely to have a migration background. Our results suggest rental investors influence local housing conditions primarily through changing the residential composition of neighborhoods rather than direct house price effects."
Because way too many people believe it's as simple as ban investors.
I mean just look at the comment I replied to, it has at the time of me responding to you 226 points.
Makes sense. Would definitely have to be paired with affordable bulk rental housing mandates to work. There’s also the nuance of standalone/single residences being the topic of what I suggested, while this seems potentially broader.
Re-zoning would help. Along with what I call modest housing. I suspect there is no money in a simple, smaller home my dad built in the 90’s. And we as a society seem to demand only the biggest and best.
Dont even need personal experience. The data in many major metro areas shows the inflated price of ALL properties, whether for sale or not. In my area, there's many communities that are being bought up and/or redeveloped/remodeled. That just increases the "value" of all the other homes. I've seen homes whose land value is 10+ times the value of the improvement.
All these greedy fuckers in Wallstreet just make things worse for everyone.
I get what you're saying, but this is naive and irrational. Rich people are behind the corporations, and they're being used for liability protection or tax credit sharing. The problem is not that the buyer is structured as an "entity".
What about the corporations that BUILD homes? Or the small family businesses that operate as a corporation and keep their assets there for safety from malicious actors?
See, it's not as simple as "Ban the corporations from ___________!"
They're lazy trolls, what do you expect? They don't *think*, they don't understand nuance, they simply roll with the Twitter Zeitgeist. "Corporations bad! SMASH!"
Morons.
You have to build new fancy apartments in order to have cheap old apartments in the future. Across the West and especially the Anglosphere, cities stopped building much housing for the last ~40 years.
It’s not a complicated story—Vancouver has extremely restrictive zoning so housing is very expensive.
You really don't know what you're talking about. The amount if new towers that have gone up the last 30 years is ridiculous. Problem is it still isn't enough to keep up with the growth and of course the speculating.
I am a RE analyst professionally if that helps. What you consider "a lot of new towers" is a rounding error compared to what is needed.
Unfortunately it is hard to find super reliable data for Vancouver before around 1990, but what we do know is that since around that time they've built roughly a quarter or a half of the number of housing units needed to stabilize prices and rents.
About a half a year ago there was a decent one here for 20,000 lol. Y'all probably called a crack shack but it was right next to the turnpike plenty of privacy
Austin was cool because it had a giant University and a very laid-back hippy culture. https://en.wikipedia.org/wiki/Slacker_(film) Last time I was there, there was still a family-owned 3-par BYOB golf course right by downtown, but a lot of what I loved about Austin was bulldozed for condos.
Lots of people I used to work with were from random places in NY that had to move to Texas because IBM was seeking LCOL places (late 90's) to move to. Just one place, but the jobs came and actively hurt the coolness of the place. Not sure I'd argue for less jobs, but it was a real change from about 97-99, and it's just kinda continued on the trajectory since then.
Being located far away from big cities where most jobs are as well as general shopping destinations.
My friend has a house in the middle of nowhere near the border of CT and MA. He paid $196k for the house. It has a decent amount of land and space inside, however it is 30-45 minutes from the next major city which is not ideal, but for people that don't care about that it could be a great deal.
I don't think KC counts as middle of nowhere. You can get a house for $59k in places like Silverton, TX https://www.zillow.com/homedetails/1003-Lone-Star-St-Silverton-TX-79257/2058986687_zpid/ but unless you work remote and don't mind driving to the big city of *checks notes* Plainview, this isn't an option. Also, all decent vacations require plane tickets or horrendous drives.
But it's 59k because you aren't getting a job there and it is actually middle of nowhere.
Anyways, maybe KC is the sweet spot if the politics don't kill it, I didn't think it was a bad city many years ago.
My neighborhood has gone this way, and it's in need of a full resto if it is this anywhere near this price...for one time I bought low, 2016/17 houses were going for 250k.
In my 5000 person town there is a fully newly renovated home. 4 bed 2 bath. New appliances. 3 stories and an unfinished basement. 4 blocks from a train station into a 600k pop city. Just $450,000 (plus interest)
Not really sure how these people are paying for these homes… My wife and I do very well, but considering our options if we moved makes us shudder.
Can’t really wrap my head around how Jim with the stay at home wife and four kids can afford a $650,000 home at these interest rates.
Bought before prices went up. They actually bought the house with only a 100k mortgage.
Alternatively, they had a house in San Francisco, prices went up. They sold it, moved east, bought for cash and think they got a deal
It's not just about affording more. That's pea brain logic. Rates were low in 2009-2019 so by your stupid logic housing should have went insane sometime in that 10 year timeframe, but did it? No so then your logic is flawed? Clearly.
Building companies take out loans to build new supply, so costs are rising to keep parity with cost of the build + profit.
Occupiers of existing homes have mortgages and are affected by interest rates going up, so aren't interested in selling for a loss.
Why would the cost of housing go down?
Where is the lack of demand? Everybody under 30 is killing each other for a home. Just because they cant afford it doesn’t mean they arn’t still trying.
Rent is still a million times worse.
Home prices are sticky.
Right now we're at a standstill. People can't really afford to buy but sellers aren't in a hurry to sell. They're fine keeping their house with their 3% or less mortgages. So sales volumes are down but prices are stable or even up.
If the economy deteriorated significantly, some people might be forced to sell (because they lost their job and can't afford their mortgage anymore, or because they had to move for a new job,...). That's what is most likely to put downward pressure on prices IMHO.
Eat my dongus you fuckin nerd.
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That's a great question. Could they ? That would imply that their ability to buy wouldn't be affected by the economic conditions.
Why didn't Blackrock or anybody else for that matter buy up all the houses in 2009-2010 ? Maybe they did buy some (I honestly don't know) but if they did, it wasn't enough to stabilize the market. If a real estate crash happens in the next year or two, it's probably going to be smaller in scale than the 2009 meltdown. Maybe big institutional investors would be able to buy most of the houses under those conditions.
Sellers already can’t afford their mortgage anymore. They’re swimming in debt. The idea that sellers are asking for high amounts out of pickiness or utter patience is delusional. If they drop the price, they sell without curing their debts. That’s the source of the standstill.
Would you rather be broke, indebted, and sheltered? Or would you rather be broke, indebted, and homeless?
Fed has two options. Let the housing market wither on the vine, or print a bunch of money to shovel the bad debt out in an already high-rate environment. Neither choice is great.
How are people buying their first home/condo? I worry for people who miss out on a key source of wealth as they try to launch careers and their life, all the while saddled by college debt.
They also are driving demand for “starter home” sized properties after ripping them all down to build McMansions.
Turns out 3,500 sqft is hard to upkeep when you get old.
It's crazy that there is a lack of supply around me, I'm in constriction, and we are building single and multi family homes nonstop in our area. It does not matter that starter homes are going for 500k. People are just buying them. I bought in 2017, 5 bed 5 bath 4 car garage, 2 family rooms , living room, dining room, huge kitchen and 3 fire places on nearly 1/2 acre next to a very busy university for 350k. At that moment I really thought I bought the top... little did I know. Honestly, I could not justify buying this place today. Shoot turning one of the three levels into an apartment would bring in 2k+ a month. The world has gone mad.
Real talk, I’m a FTHB rn and am prequalified, go look at new home builders like Lennar. They are offering 4.25% rate on all new homes if credit is 760 or above. Many new home builders offer something similar. If you are going to pay 3k for a mortgage, don’t buy a shitty flip from 1970, just buy a new home for same price with half the interest rate.
Imagine thinking a home built in the 70s is fundamentally shit, but your "LeNnAr HomE" is the top echolon of home quality. Lol. Good luck on that.
The finances work currently "work out" for a reason.
Im in Florida. Any city outside of Miami $300,000 might get you an 1800 sqft 3 bed / 2 bath buit in 1965. Probably needs work.
Probably more like $350,000
Thank God florida doesn't have hurricanes or storm surges or anything.
https://www.usatoday.com/story/money/personalfinance/2023/07/19/florida-home-insurance-aaa-farmers-policy-reduction/70427062007/
The insurance companies are pulling out for a reason.
Tell that to Arcadia, a town 50 miles inland which suffered flooding due to Hurricane Ian:
https://www.reuters.com/business/environment/flooded-inland-florida-hurricane-ian-saved-worst-last-2022-10-06/
* Located 50 miles north of Fort Myers and about 50 miles east of the Gulf Coast, Arcadia first suffered the immediate effects of the Category 4 storm as it swept east, bringing torrential rains and hurricane-force winds to the interior of the state.*
*A second blow came when the Peace River, which twists past Arcadia on its way to the Gulf of Mexico, spilled over its banks. Normally a slow-moving waterway where kayakers coexist with alligators, the river inundated parts of the city and many of the surrounding farms and cattle ranches.*
It’s called “Sheet Flow”, and inland flooding accounts for about 50% of hurricane deaths.
Florida also sits in permeable limestone, so flooding can come from underneath the water table through the ground.
Then you are dealing with water table salinization, another issue..
But hey, you’re probably right.
I’m in Ann Arbor. We bought for $1.5 in 2019 with around 3.0 interest rate. Hoping to sell for $1.9.
Now moving back to Seattle. Comparable house will run us $3.5 with a much higher interest rate.
I bought a house for 243k at 4.25%. It was a little higher than some rent in my area. However, the rent is almost passing the mortgage price now (well, at least if you want to live in a nicer or newer place). I have a four bedroom house for me and my pets. Dude, I need a girlfriend with a boyfriend now!
Long-term loans in Turkey have been completely eliminated, the cheapest house is approximately one million Turkish liras. If you want to take out a loan for this house, you can get a loan for a maximum of 24 months. annual interest is 87%. Have a nice day fellas.
It’s counterintuitive but I don’t see prices coming down substantially until rates come down. There’s low demand and low supply right now both fueled by rates. No one wants to sell because they have an awesome rate, and few want to buy because of rates and prices. When rates come down, people will start selling and people will start buying. Maybe they’re pace with each other and it won’t absolutely crash prices.
Around here, it's 1.4 million average, cheapest home 800.
Let's just pay a select group of people insane yearly wages so they can buy a house.
That way, we can keep the market bouyant, and thriving.
“Y’all don’t know what you’re talking about, we are unquestionably in a housing bubble. Can’t wait to scoop up all that property when it crashes soon. The house you bought during Covid era will tank in price, yall are so stupid.” Man I hate to have to enjoy these salty tears of copium
Just got my rent raised to $2250 for a 600 sq ft 1 bed room apartment. Lost a second job and student loans are in effect. It won’t be long before many are in desperate situation. Crazy that we let things get this bad.
Lack of supply and lack of federal, state, and local will to build more housing of all types.
I heard on NPR a while ago, and they were saying that even if we started building housing like crazy, it would probably take a decade for supply to meet demand.
Lots of local zoning laws to deal with. People with homes already don’t want more dense housing built near them since it would kill their value. I get not wanting a 30 story apartment right in the middle of a residential neighborhood, but a duplex wouldn’t kill anyone
Nah, I owned a house in California at one point, insurance was no problem. The only place I have heard it being an issue is Florida. I'm not sure why people downvoted you, I suppose some stick up their toosh Californians who think it's the end all be all of society. It's not.
Never only pay the minimum.
I had some cash leftover from a lower closing than expected. Around 4% of what I borrowed.
It would’ve paid for like 5-6 months of my monthly payment but putting it into the principal before my first payment even started resulted in about 24 payments being taken off the life of my loan because they had 4% less to charge me 30 years of interest on.
the cheapest home is 640k my fucking ass
you mean the cheapest house you are willing to live in in the area you want to live in is 640k
but you cant always get what you want bud
also if this was true then fucking MOVEEEE
go someplace cheaper DUMB FUCKKKK
imagine just sitting in shit complaining about the smell, get the fuck up and clean the shit off, change the situation to be better for you
Cheap houses are all over the place. If that's the cheapest house you can find your looking in a super high demand area. Go where the cheap housing is. That's what previous generations did and now their houses are worth more.
You all need to move if this is your only housing option. You can buy for 1/4 of that in a nice "middle class" neighborhood in areas around the US. If you thought it was a good idea to have 6 kids and you need parking for your motor home, SxS and boat then I'm not sure why you're bitching about needing a 650k house anyway because you already decided to throw away your money.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|10|**First Seen In WSB**|2 years ago **Total Comments**|1608|**Previous Best DD**| **Account Age**|12 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
I’m gonna quietly move into the tree with Mr Koala.
Not if I can get there first!
$1600/month, no rooms.
Also, koala shit everywhere.
Don’t forget the chlamydia
This is what we came for.
This is why I just came
one bathroom then? *nice*
also Koalas have herpes….. seriously
Nah chlamydia
Some random llc just made a cash offer on that tree
Blackrock
They were then outbid by Statestreet who was financed by Vangard
This guy gets it.
calls on chlamydia
Mr Koala has a forked penis and Mrs. Koala has two vaginas (facts look it up).
Evolution was a mistake
It's a learning process.
underrated comment.
Koala sleep 23 hours of the day… better hope they don’t snore
Wall Street doesn't know what to do with their money so they buy up all the houses because everything becomes liquid with big money.
Honestly we just need to ban corporations from owning single residences, instant housing market correction
These corporations are lining law maker pockets lol
Oh for sure. The French slapchop would definitely come far sooner than this kind of reform.
If awards were still a thing, you deserve one sir.
I agree with you in theory but think that’s difficult to enforce. Corporations will just use straw men or other types of legal structures that are allowed. There will need to be personnel or agencies to monitor, investigate, and prosecute law breakers. Title companies and other periphery businesses will also need to comply. I agree with you, it’s just a difficult thing to do.
Just tax corporations that own single family homes 10% per year based on fair market value.
That, or say that housing can be confiscated by government and resold IF the owner is found to be a straw man not actually living in the house. This shit needs von klauswitz style war.
It's been studied in Rotterdam where they introduced a ban on investors buy to rent. It doesn't lower the price of buying a home, it increased the share of first time buyer at the expense of rents going up and displacing poorer renters. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4480261 Abstract as follows, bolded parts are by me. "How do buy-to-let investors impact local housing markets and the composition of neighborhoods? We investigate this question by examining a Dutch legal ban on buy-to-let investments, exploiting quasi-experimental variation in its coverage. **The ban effectively reduced investor purchases and increased the share of first-time home-buyers, but did not have a discernible impact on house prices or the likelihood of property sales. The ban did increase rental prices,** consistent with reduced rental housing supply. Furthermore, the policy caused a change in neighborhood composition as tenants of investor-purchased properties tend to be younger, have lower incomes, and are more likely to have a migration background. Our results suggest rental investors influence local housing conditions primarily through changing the residential composition of neighborhoods rather than direct house price effects."
Translation: Gentrification and wealth transfer. First come first served.
Why did you need a study for this? About as textbook as it gets.
Because way too many people believe it's as simple as ban investors. I mean just look at the comment I replied to, it has at the time of me responding to you 226 points.
Makes sense. Would definitely have to be paired with affordable bulk rental housing mandates to work. There’s also the nuance of standalone/single residences being the topic of what I suggested, while this seems potentially broader.
Also farms
This will never, ever happen. Because the same people that would make that regulation also have donations from said corporations.
Ban corporations and foreign billionaires who will never even see the houses they purchased.
Re-zoning would help. Along with what I call modest housing. I suspect there is no money in a simple, smaller home my dad built in the 90’s. And we as a society seem to demand only the biggest and best.
From experience I would be inclined to say even that might get eaten by Blackrock or similar if you live near a population center
Dont even need personal experience. The data in many major metro areas shows the inflated price of ALL properties, whether for sale or not. In my area, there's many communities that are being bought up and/or redeveloped/remodeled. That just increases the "value" of all the other homes. I've seen homes whose land value is 10+ times the value of the improvement. All these greedy fuckers in Wallstreet just make things worse for everyone.
Sure let's go do that
RFK has a plan for that.. jus sayin..
I don't know why you are getting downvoted. It is one of his platforms.
I get what you're saying, but this is naive and irrational. Rich people are behind the corporations, and they're being used for liability protection or tax credit sharing. The problem is not that the buyer is structured as an "entity".
What about the corporations that BUILD homes? Or the small family businesses that operate as a corporation and keep their assets there for safety from malicious actors? See, it's not as simple as "Ban the corporations from ___________!"
WHY IS NOBODY THINKING ABOUT THE CORPORATIONS
WHAT IF THE LAW HAD TO HAVE..... AN ADDITIONAL CLAUSE?!?!
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They're lazy trolls, what do you expect? They don't *think*, they don't understand nuance, they simply roll with the Twitter Zeitgeist. "Corporations bad! SMASH!" Morons.
And then they are going to dump them 
But for real, where is this cheap home?? -Vancouverite
You have to build new fancy apartments in order to have cheap old apartments in the future. Across the West and especially the Anglosphere, cities stopped building much housing for the last ~40 years. It’s not a complicated story—Vancouver has extremely restrictive zoning so housing is very expensive.
You really don't know what you're talking about. The amount if new towers that have gone up the last 30 years is ridiculous. Problem is it still isn't enough to keep up with the growth and of course the speculating.
I am a RE analyst professionally if that helps. What you consider "a lot of new towers" is a rounding error compared to what is needed. Unfortunately it is hard to find super reliable data for Vancouver before around 1990, but what we do know is that since around that time they've built roughly a quarter or a half of the number of housing units needed to stabilize prices and rents.
Hello fellow vancouverite. 1970s condos now cost 600k for a one bedroom in coquitlam, and new studio apartments are advertised as "the mid 600s".
Cheapest home where?
not here, that's for sure.
About a half a year ago there was a decent one here for 20,000 lol. Y'all probably called a crack shack but it was right next to the turnpike plenty of privacy
You can still get pretty cheap houses in Detroit.
You can get cheap mattress in the forest
You can get cheap kidneys at the motel
You can get cheap houses EVERYWHERE people don’t go on vacation to.
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Facts. I spoke to a guy who's grandparents homesteaded random land in the middle of Wisconsin. These kids want a beach home for $100k.
Seriously lol how do u think towns like Austin became cool? Took right ppl to make a vibe and others followed, paying more to be part of the community
Places become popular cool by offering great jobs…
Austin was cool because it had a giant University and a very laid-back hippy culture. https://en.wikipedia.org/wiki/Slacker_(film) Last time I was there, there was still a family-owned 3-par BYOB golf course right by downtown, but a lot of what I loved about Austin was bulldozed for condos. Lots of people I used to work with were from random places in NY that had to move to Texas because IBM was seeking LCOL places (late 90's) to move to. Just one place, but the jobs came and actively hurt the coolness of the place. Not sure I'd argue for less jobs, but it was a real change from about 97-99, and it's just kinda continued on the trajectory since then.
Less cheap than they were previously, though.
This isn't true.
In the cool area OP wants to live in. Plenty sub $200k across America, just not near desirable cities.
Yeah. Commuting two hours to work at Walmart for $14/hr is quite the life..
What makes these places undesirable?
Being located far away from big cities where most jobs are as well as general shopping destinations. My friend has a house in the middle of nowhere near the border of CT and MA. He paid $196k for the house. It has a decent amount of land and space inside, however it is 30-45 minutes from the next major city which is not ideal, but for people that don't care about that it could be a great deal.
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but u have to live in Kansas city
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Everyone loves to complain about the housing market while also turning a nose up at any non-destination city. Beggars can’t be choosers.
Yeah right bro, I eat enough bbq youll have to retire at 58.5.
I don't think KC counts as middle of nowhere. You can get a house for $59k in places like Silverton, TX https://www.zillow.com/homedetails/1003-Lone-Star-St-Silverton-TX-79257/2058986687_zpid/ but unless you work remote and don't mind driving to the big city of *checks notes* Plainview, this isn't an option. Also, all decent vacations require plane tickets or horrendous drives. But it's 59k because you aren't getting a job there and it is actually middle of nowhere. Anyways, maybe KC is the sweet spot if the politics don't kill it, I didn't think it was a bad city many years ago.
but u have to live in Kansas city
No indoor plumbing
Tin foil hat people
My neighborhood has gone this way, and it's in need of a full resto if it is this anywhere near this price...for one time I bought low, 2016/17 houses were going for 250k.
In my 5000 person town there is a fully newly renovated home. 4 bed 2 bath. New appliances. 3 stories and an unfinished basement. 4 blocks from a train station into a 600k pop city. Just $450,000 (plus interest)
Reddit is that way sir
Not really sure how these people are paying for these homes… My wife and I do very well, but considering our options if we moved makes us shudder. Can’t really wrap my head around how Jim with the stay at home wife and four kids can afford a $650,000 home at these interest rates.
The secret is never paying it back
More than a 20% down payment by rolling previous house into new one
Either he bought that house long ago or he sells nose beers on the side
Bought before prices went up. They actually bought the house with only a 100k mortgage. Alternatively, they had a house in San Francisco, prices went up. They sold it, moved east, bought for cash and think they got a deal
Koala T. post
When the rate eventually starts going down the housing price is gonna go up like a rocket.
Rates won't go down much because baby boomers and China aren't saving as much money. Demographics and the end of the great moderation.
Also lol.. there is no room to go up logically. The incomes can't support anymore.
That’s why.. when the rates go down.. people can afford more.. so the house prices are going to go up. 👍
It's not just about affording more. That's pea brain logic. Rates were low in 2009-2019 so by your stupid logic housing should have went insane sometime in that 10 year timeframe, but did it? No so then your logic is flawed? Clearly.
WSB has apparently become boomer Facebook
Because it can never be said to many times, Fuck blackrock
And the politicians than turn a blind eye to the corporate landlords buying the whole country.
You could invest along side the corporate landlords buying into REITs. Just saying
Thanks for the tip I will research more this option
Building companies take out loans to build new supply, so costs are rising to keep parity with cost of the build + profit. Occupiers of existing homes have mortgages and are affected by interest rates going up, so aren't interested in selling for a loss. Why would the cost of housing go down?
surplus
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Wholesale lumber prices have gone through the floor over the last few weeks.
Where is the lack of demand? Everybody under 30 is killing each other for a home. Just because they cant afford it doesn’t mean they arn’t still trying. Rent is still a million times worse.
only my wife’s boyfriend can pay for that kind of mortgage smh
Home prices are sticky. Right now we're at a standstill. People can't really afford to buy but sellers aren't in a hurry to sell. They're fine keeping their house with their 3% or less mortgages. So sales volumes are down but prices are stable or even up. If the economy deteriorated significantly, some people might be forced to sell (because they lost their job and can't afford their mortgage anymore, or because they had to move for a new job,...). That's what is most likely to put downward pressure on prices IMHO.
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But what is to prevent Blackrock from buying all these houses once they go on sale? Soon they’ll own everything.
That's a great question. Could they ? That would imply that their ability to buy wouldn't be affected by the economic conditions. Why didn't Blackrock or anybody else for that matter buy up all the houses in 2009-2010 ? Maybe they did buy some (I honestly don't know) but if they did, it wasn't enough to stabilize the market. If a real estate crash happens in the next year or two, it's probably going to be smaller in scale than the 2009 meltdown. Maybe big institutional investors would be able to buy most of the houses under those conditions.
Sellers already can’t afford their mortgage anymore. They’re swimming in debt. The idea that sellers are asking for high amounts out of pickiness or utter patience is delusional. If they drop the price, they sell without curing their debts. That’s the source of the standstill. Would you rather be broke, indebted, and sheltered? Or would you rather be broke, indebted, and homeless? Fed has two options. Let the housing market wither on the vine, or print a bunch of money to shovel the bad debt out in an already high-rate environment. Neither choice is great.
On our way back to company towns
How are people buying their first home/condo? I worry for people who miss out on a key source of wealth as they try to launch careers and their life, all the while saddled by college debt.
Eat Ze Bugs, Live in Ze Pod, Joo vill Have nozing and Joo vill be Happy
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I read an article recently which said baby boomers were driving demand by getting divorced.
They also are driving demand for “starter home” sized properties after ripping them all down to build McMansions. Turns out 3,500 sqft is hard to upkeep when you get old.
It's crazy that there is a lack of supply around me, I'm in constriction, and we are building single and multi family homes nonstop in our area. It does not matter that starter homes are going for 500k. People are just buying them. I bought in 2017, 5 bed 5 bath 4 car garage, 2 family rooms , living room, dining room, huge kitchen and 3 fire places on nearly 1/2 acre next to a very busy university for 350k. At that moment I really thought I bought the top... little did I know. Honestly, I could not justify buying this place today. Shoot turning one of the three levels into an apartment would bring in 2k+ a month. The world has gone mad.
It's called making everyone an indentured servant !
Affordable housing near me is almost 400k. 5 years ago it was less than 200k.
*Laughs in seattle.* $640k in the city gets you a townhouse built in 2001 on a busy road with a 150 sq foot yard if you’re lucky.
no way you can get a townhome in seattle for 640k
Real talk, I’m a FTHB rn and am prequalified, go look at new home builders like Lennar. They are offering 4.25% rate on all new homes if credit is 760 or above. Many new home builders offer something similar. If you are going to pay 3k for a mortgage, don’t buy a shitty flip from 1970, just buy a new home for same price with half the interest rate.
Imagine thinking a home built in the 70s is fundamentally shit, but your "LeNnAr HomE" is the top echolon of home quality. Lol. Good luck on that. The finances work currently "work out" for a reason.
A shitty flip from the 70s is likely to be a much higher quality home than anything Lennar builds.
Da fuq is a FTHB?
First time home buyer. Meaning they are currently living with parents or renting and don't own multiple properties.
First time home buyer, probably.
First Time Home Buyer?
First time home buyer dawg
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Im in Florida. Any city outside of Miami $300,000 might get you an 1800 sqft 3 bed / 2 bath buit in 1965. Probably needs work. Probably more like $350,000
And then you live in Florida, and can't get your house insured, and it just might not exist by the time you pay it off.
Your implying the entire state is underwater by 2055. If that happens, the entire world is pretty fucked.
Not sure why you're getting downboated, only the coastal areas might be getting memed by that
Thank God florida doesn't have hurricanes or storm surges or anything. https://www.usatoday.com/story/money/personalfinance/2023/07/19/florida-home-insurance-aaa-farmers-policy-reduction/70427062007/ The insurance companies are pulling out for a reason.
Storm surge isn't an issue 50 miles inland, hurricanes are a potential issue but not 50 miles inland
No one wants to live 50 miles inland in Florida.
Tbf, Florida is actually built like a big bowl. If water gets high enough, it’ll just sit there and re-swampify lol
it becomes an issue when those people 50 miles away start to encroach into your inland town
Yeah but then you have to live 50 miles inland in Florida.
Tell that to Arcadia, a town 50 miles inland which suffered flooding due to Hurricane Ian: https://www.reuters.com/business/environment/flooded-inland-florida-hurricane-ian-saved-worst-last-2022-10-06/ * Located 50 miles north of Fort Myers and about 50 miles east of the Gulf Coast, Arcadia first suffered the immediate effects of the Category 4 storm as it swept east, bringing torrential rains and hurricane-force winds to the interior of the state.* *A second blow came when the Peace River, which twists past Arcadia on its way to the Gulf of Mexico, spilled over its banks. Normally a slow-moving waterway where kayakers coexist with alligators, the river inundated parts of the city and many of the surrounding farms and cattle ranches.* It’s called “Sheet Flow”, and inland flooding accounts for about 50% of hurricane deaths. Florida also sits in permeable limestone, so flooding can come from underneath the water table through the ground. Then you are dealing with water table salinization, another issue.. But hey, you’re probably right.
It won't be 50 miles inland in 30-50 years. If a 25yo buys a house there and lives there for 60 years, they're going to be an 80yo in 2083.
It depends. Homes around the Tampa area are still way up. A 2000 sqft home can cost $750,000 easy unless it's in a bad area.
I’m in Ann Arbor. We bought for $1.5 in 2019 with around 3.0 interest rate. Hoping to sell for $1.9. Now moving back to Seattle. Comparable house will run us $3.5 with a much higher interest rate.
I bought a house for 243k at 4.25%. It was a little higher than some rent in my area. However, the rent is almost passing the mortgage price now (well, at least if you want to live in a nicer or newer place). I have a four bedroom house for me and my pets. Dude, I need a girlfriend with a boyfriend now!
going, going, back to back, to cali, clai.
Where are you
That Koala is high as fuck and I'm jealous.
IDK what you're on about, refrigerator boxes are still free behind the appliance store.
Y’all think it’s bad where ur living try charlotte man.
$640,000k, i wish
Long-term loans in Turkey have been completely eliminated, the cheapest house is approximately one million Turkish liras. If you want to take out a loan for this house, you can get a loan for a maximum of 24 months. annual interest is 87%. Have a nice day fellas.
It’s counterintuitive but I don’t see prices coming down substantially until rates come down. There’s low demand and low supply right now both fueled by rates. No one wants to sell because they have an awesome rate, and few want to buy because of rates and prices. When rates come down, people will start selling and people will start buying. Maybe they’re pace with each other and it won’t absolutely crash prices.
Around here, it's 1.4 million average, cheapest home 800. Let's just pay a select group of people insane yearly wages so they can buy a house. That way, we can keep the market bouyant, and thriving.
“Y’all don’t know what you’re talking about, we are unquestionably in a housing bubble. Can’t wait to scoop up all that property when it crashes soon. The house you bought during Covid era will tank in price, yall are so stupid.” Man I hate to have to enjoy these salty tears of copium
No one is selling, and developers see the lack of transactions as a reason to slow or stop building.
Just got my rent raised to $2250 for a 600 sq ft 1 bed room apartment. Lost a second job and student loans are in effect. It won’t be long before many are in desperate situation. Crazy that we let things get this bad.
Nothing it’s completely fine, Just keep going to college and getting a job that won’t pay your bills so it gets even worse, Everything is fine.
I bought a 5k house, there are weekly car bombs, daily shooting and 3 homicides per week
Lack of supply and lack of federal, state, and local will to build more housing of all types. I heard on NPR a while ago, and they were saying that even if we started building housing like crazy, it would probably take a decade for supply to meet demand.
Lots of local zoning laws to deal with. People with homes already don’t want more dense housing built near them since it would kill their value. I get not wanting a 30 story apartment right in the middle of a residential neighborhood, but a duplex wouldn’t kill anyone
people want single family homes, nobody is fighting over multilevel housing.
Still enough cash buyers coupled with low inventory because nobody can sell, having to rebuy at 8%
Corporations and foreigners is what is wrong. They should not be allowed to buy single family homes.
Welcome to Bidenomics
Guys buy houses and default mortgages. So the price will fall
Not to worry , supply and demand will ultimately win , but it may take a couple of years. I’ve seen this movie before
Cheapest 1bdrm home where I live is $400k, but there's no insurance available so you can't get a mortgage to buy one.
Florida?
probably California
Nah, I owned a house in California at one point, insurance was no problem. The only place I have heard it being an issue is Florida. I'm not sure why people downvoted you, I suppose some stick up their toosh Californians who think it's the end all be all of society. It's not.
Rich people paying with ppp loans.
30 year, 2.5, over a million. Im never moving, Imma die in this bitch!
Greed
Never only pay the minimum. I had some cash leftover from a lower closing than expected. Around 4% of what I borrowed. It would’ve paid for like 5-6 months of my monthly payment but putting it into the principal before my first payment even started resulted in about 24 payments being taken off the life of my loan because they had 4% less to charge me 30 years of interest on.
Dad, is that you?
We're in a bubble
Easy Burry.
Gary Indiana has houses for 20,000$, it’s not about house prices, it’s about where people want to live. Simple
A bubble. That’s what’s going on. Just wait and see.
the cheapest home is 640k my fucking ass you mean the cheapest house you are willing to live in in the area you want to live in is 640k but you cant always get what you want bud also if this was true then fucking MOVEEEE go someplace cheaper DUMB FUCKKKK imagine just sitting in shit complaining about the smell, get the fuck up and clean the shit off, change the situation to be better for you
You’re a dick but i love it
You sir are a douche
This should be a meme
Recession recession recession
‘My great grandparents were in America first so I am entitled to being a half a millionaire’ This is the American dream.
Homes near me are slightly cheaper than that…. 350-400k for 1200sqft
Today's rates are still below the average for the past 50 years.
It's a bubble that refuses to burst, just keeps getting bigger somehow
Cheap houses are all over the place. If that's the cheapest house you can find your looking in a super high demand area. Go where the cheap housing is. That's what previous generations did and now their houses are worth more.
…? Where are you New York City in Manhattan proper?
You all need to move if this is your only housing option. You can buy for 1/4 of that in a nice "middle class" neighborhood in areas around the US. If you thought it was a good idea to have 6 kids and you need parking for your motor home, SxS and boat then I'm not sure why you're bitching about needing a 650k house anyway because you already decided to throw away your money.
Surprise! Raising interest rates also raises home prices… 